Question: Assume that the returns from an asset are normally distributed. The average annual return for this asset over a specific period was 17 2 percent

 Assume that the returns from an asset are normally distributed. The

Assume that the returns from an asset are normally distributed. The average annual return for this asset over a specific period was 17 2 percent and the standard deviation of those returns in this period was 43.53 percent What is the approximate probability that your money will double in value in a single year? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.) Probability of doubling What about triple in value? (Do not round intermediate calculations. Enter your answer as a percent rounded to 6 decimal places, e.g., 32,161616.) Probability of tripling %

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!